USMO - USA Mobility Inc. (NASDAQ Stock)

[BadThad]

Huge dividend payer, I collected a giant $1.65 last quater. Can you say CHA-CHING? $$$ Combine that with excellent stock performance history and you have a winner in your long portfolio:

10-day Avg Vol 345.1K
Float 22.9M
Shares Out. 27.3M
Dividend/Yield $2.60/9.29%
Price/Earnings (TTM) 10.79x
Institutions Holding Shares 313
Held By Institutions (MRQ) 95.00%
Price/Book: 1.06x Actual/5.31x Industry Average

USMO

Chart:

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Biz Profile:

USA Mobility, Inc. (USA Mobility) is a provider of wireless communications solutions to the healthcare, government, large enterprise and emergency response sectors. The Company operates nationwide in one-way and two-way paging networks. In addition, USA Mobility offers mobile voice and data services through a third-party provider, including BlackBerry devices and global positioning system applications. The Company’s product offerings include customized wireless connectivity systems for healthcare, government and other campus environments. USA Mobility also offers machine to machine (M2M) telemetry solutions for numerous applications that include asset tracking, utility meter reading and other remote device monitoring applications on a national scale.

OK, this stock got beat-up pretty bad mid-2006 because everyone said "it's a pager company" and "pagers are dead"......WRONG! They are much more than pagers, go read about them. They are making LOTS and LOTS of money because they have HUGE margins. IMO, this stock is headed for $40-50 ground, especially the way they are treating the stock holders with ginormous divdends!

RATINGS

TheStreet.com - HOLD
Ford - STRONG BUY
Market Edge - AVOID
Jaywalk - HOLD
Today's Price: $27.34 (12JUL2007)

[BadThad]

Catch up on news:

USA Mobility Announces Executive Realignment
4:00p ET July 11, 2007 (Business Wire)
USA Mobility, Inc. (Nasdaq: USMO), a leading provider of wireless messaging and communications services, today announced several changes to its executive management team.

James H. Boso, formerly executive vice president of sales, has been promoted to executive vice president of sales and marketing. Boso's role in leading the Company's sales organization will be expanded to encompass managing USA Mobility's marketing efforts.

Vincent D. Kelly, president and chief executive officer, stated: "Jim Boso has been a key contributor to USA Mobility's success in driving gross additions with the sales force and maintaining critical customer relationships. He is a seasoned executive whose leadership and business acumen are the right skills that we need to integrate our sales and marketing initiatives as we continue to support and focus on our key vertical customer segments and expand our service offerings."

Boso replaces Mark Garzone, executive vice president for marketing, who is leaving to explore other opportunities, effective July 9, 2007. "Mark has been an integral part of USA Mobility's re-branding initiatives but now is the right time to integrate seamlessly sales and marketing under Jim," said Kelly. "We wish Mark the best and thank him for his many contributions to the development and implementation of the Company's marketing initiatives and communications strategy."

In addition, Scott Tollefsen, the Company's general counsel, is leaving to explore other opportunities, effective July 9, 2007. Kelly said, "Scott has done a fine job guiding our legal affairs, especially in handling corporate governance, advocating our regulatory interests, and advising us on a wide range of issues that were important to us as we worked through the process of integrating Arch and Metrocall into USA Mobility. Many of the legal management procedures he introduced will continue to help us as we go forward. He has been loyal and dedicated to the Company, and we wish him well in his future endeavors."

Sharon Woods-Keisling has been appointed to the position of corporate secretary, effective July 9, 2007. Woods-Keisling has been with the Company for 17 years and currently serves as assistant treasurer and vice president of treasury operations, positions that she will retain in addition to her new responsibility.

Stock is back on the rise today! :D

[BadThad]

CRAP!!! Stupid bear market took away my USMO! :mad: Hit my bottom trigger.....arrrrrggggggg.....I made a lot of green, but now I have to buy back in.This thing just touched my trigger then went back up....man oh man. :mad:

[BadThad]

Still depressed I'm no longer in this position until the market gets back on track. Great company and super divy payer.

USA Mobility Reports Second Quarter Operating Results
4:30p ET August 1, 2007 (Business Wire)
USA Mobility, Inc. (Nasdaq: USMO), a leading provider of wireless messaging and communications services, today announced operating results for the second quarter ended June 30, 2007. Reported net income was $13.0 million, or $0.47 per fully diluted share, compared to $11.0 million, or $0.40 per fully diluted share, in the second quarter of 2006.

Key results in the second quarter included:

-- Reported revenue was $107.5 million, compared to $111.5 million in the first quarter of 2007 and $127.2 million in the second quarter of 2006.

-- The quarterly rate of revenue erosion improved to 3.7 percent from 3.9 percent in the first quarter, while the annual rate of revenue erosion in second quarter improved to 15.5 percent from 17.3 percent in the first quarter of 2007.

-- Average revenue per unit ("ARPU") was $8.54, compared to $8.65 in the first quarter and $8.74 in the year-earlier quarter.

-- Operating expenses -- excluding depreciation, amortization and accretion -- totaled $74.1 million, a reduction of $2.3 million, or 3.0 percent, from the first quarter and a reduction of $15.4 million, or 17.2 percent, from the second quarter of 2006.

-- EBITDA (earnings before interest, tax, depreciation, amortization and accretion) totaled $33.3 million, while EBITDA margin (or EBITDA as a percentage of revenue) was 31.0 percent.

-- Operating income was $20.9 million, compared to $18.7 million in the second quarter of 2006.

-- Net unit loss was 155,000, compared to 193,000 in the first quarter and 203,000 in the year-earlier quarter. Units in service at June 30, 2007 totaled 3,757,000, compared to 3,912,000 at March 31, 2007 and 4,431,000 at June 30, 2006.

-- The quarterly rate of subscriber erosion was 4.0 percent, compared to 4.7 percent in the first quarter. The annual rate of unit loss improved to 15.2 percent at June 30, 2007 from 15.6 percent at March 31, 2007.

-- Capital expenses were $3.5 million, compared to $5.1 million in the first quarter.

-- The Company's cash balance at June 30, 2007 was $57.6 million.

"USA Mobility continued to make steady progress during the quarter toward our 2007 goals and objectives," said Vincent D. Kelly, president and chief executive officer. "Despite the challenges of an increasingly competitive wireless industry, the Company's quarterly and annual rate of subscriber and revenue erosion again improved, albeit modestly. However, we are still challenged with a very high rate of gross subscriber cancellations, losing approximately two subscribers for every new subscriber we added last quarter. During the quarter, we partially offset the revenue impact of these losses through higher gross pager placements as well as increases in such non-pager revenue as cellular and product sales.

"In addition," Kelly said, "our strategy to aggressively market and sell our services to our core subscriber segments generated some positive results, particularly in healthcare - now 40 percent of our direct subscriber base -- where subscriber levels remained relatively flat with the prior quarter. We look for continued progress in these core segments, which include Government Services, Large Enterprises and First Responders, in the second half of 2007." Toward that end, Kelly said the Company announced several product and service enhancements during the quarter aimed at its core customers. "In June, for example, we launched the nation's first wide area coaster pager, called ReadyCall, to support healthcare providers. We also formed an alliance with WeatherBug Professional to provide severe weather alerts to first responder organizations."

Kelly also noted that the Company returned approximately $45.0 million in capital to stockholders during the second quarter in the form of cash distributions, consistent with its strategy of returning cash to stockholders. The Company paid a regular quarterly cash distribution of $0.65 per share and a special cash distribution of $1.00 per share on June 7, 2007. Both distributions were paid as a return of capital.

"Based on these results and our current cash position," Kelly added, "the Company's Board of Directors earlier today declared a regular quarterly cash distribution of $0.65 per share, payable on September 6, 2007 to stockholders of record on August 16, 2007." The Company expects the entire amount of the cash distribution to be paid as a return of capital.

"The payment of cash distributions reflects our commitment to return cash to stockholders" Kelly said. "However," he cautioned, "because the Company faces increasing operating challenges as our revenue base erodes and our opportunity to extract costs diminishes, the Board and management will weigh our options for returning capital to stockholders very carefully going forward to ensure that we sufficiently meet our internal capital requirements while continuing to operate the Company efficiently and profitably. Our top two risk factors have to do with revenue erosion and our ability to cut costs. We have seen continued high levels of gross subscriber cancellations this quarter. We have also fallen behind on our site rent reduction savings forecast though we made up for that shortfall in other expense areas this quarter. However, the longer term impact of higher than anticipated gross subscriber cancellations as well as higher than forecast expenses would be to reduce the amount of cash we will generate in future periods. So while we are pleased with many aspects of our current operating performance, we are also cautious of these risks and we are working hard to mitigate them."

Thomas L. Schilling, chief financial officer, said the Company continued to reduce operating expenses during the quarter. "Excluding depreciation, amortization and accretion, operating expenses decreased 3.0 percent from the first quarter and 17.2 percent from the second quarter of 2006," he said. "Although the pace of expense reduction slowed from previous quarters, as expected, we continued to meet our expense reduction goals in most major expense categories. One exception," Schilling noted, "was slightly higher than expected network costs in connection with tower site leases. While we will continue to reduce total operating expenses, we expect site lease expense to exceed earlier expectations for at least the next 18 months." Schilling said the combination of lower revenue and ARPU in the quarter, along with a slowing rate of operating expense reduction, contributed to a decrease in EBITDA from the prior quarter. Even so, he added, the EBITDA margin of 31.0 percent in the second quarter increased from 29.6 percent in the year-earlier quarter.

"Overall, we are pleased and encouraged by our second quarter financial results, while recognizing the risks and challenges we face," Schilling said. "However, due to our strong first half performance, we are adjusting our previous financial guidance for 2007 and now forecasting revenues between $420 million to $425 million versus our previous guidance of $400 million to $410 million, operating expenses - excluding depreciation, amortization and accretion - between $293 million to $298 million versus our previous guidance of $295 million to $300 million, and leaving our guidance on capital expenses unchanged at between $18 million to $20 million."

As previously announced, USA Mobility plans to host a conference call for investors on its second quarter results at 10:00 a.m. Eastern Time on Thursday, August 2, 2007. The dial-in number for the call is 866-409-1563 (toll-free) or 913-312-6683 (toll). The pass code for the call is 1745515. A replay of the call will be available from 2:30 p.m. ET on August 2 until 11:59 p.m. on Thursday, August 16. The replay number is 888-203-1112 (toll-free) or 719-457-0820 (toll). The pass code for the replay is 1745515.

[BadThad]

As a dividend lover, this part is of the most interest:

"Based on these results and our current cash position," Kelly added, "the Company's Board of Directors earlier today declared a regular quarterly cash distribution of $0.65 per share, payable on September 6, 2007 to stockholders of record on August 16, 2007." The Company expects the entire amount of the cash distribution to be paid as a return of capital.

"The payment of cash distributions reflects our commitment to return cash to stockholders" Kelly said. "However," he cautioned, "because the Company faces increasing operating challenges as our revenue base erodes and our opportunity to extract costs diminishes, the Board and management will weigh our options for returning capital to stockholders very carefully going forward to ensure that we sufficiently meet our internal capital requirements while continuing to operate the Company efficiently and profitably. Our top two risk factors have to do with revenue erosion and our ability to cut costs. We have seen continued high levels of gross subscriber cancellations this quarter. We have also fallen behind on our site rent reduction savings forecast though we made up for that shortfall in other expense areas this quarter. However, the longer term impact of higher than anticipated gross subscriber cancellations as well as higher than forecast expenses would be to reduce the amount of cash we will generate in future periods. So while we are pleased with many aspects of our current operating performance, we are also cautious of these risks and we are working hard to mitigate them."

[BadThad]

Man, this stock is shaping up to be a fantastic buy:

CHART

I'm looking forward to getting back in ASAP....at a bargin price! :D

[BadThad]

$19.52 today.....hot buy!

[BadThad]

Holy Crap! USMO is following the way of FRPT! Trading at $16.28 right now, this is shaping up to be an amazing bottom play IMO.

Watch this stock CLOSELY people. I think there's some serious green to be made when it levels out.

[BadThad]

OK, this is no FRPT company....do some DD and you'll see. This downturn is the biggest over-reaction I think I've ever witnessed. Stock down to $16.08! the RSI is CRAZY, INSANELY low at 11.5. This stock is so oversold it's not funny.

I'm going to cash in some of my prime stocks to generate some rev for this stock buy. I might add the ratings are top-notch for USMO:

Street.com: BUY
Ford: STRONG BUY
Market Edge: NEUTRAL (prob due to this downturn, ME is usually current)
Jaywalk: BUY

Let me restate some recent facts on USMO:

Revenue: 455M
Margin: 9.45%
Div Yield: 14.72%
P/E: 11.3 (not sure if that's current with the PPS so low now)
Company's cash balance at June 30, 2007 was $57.6 million

What the hell are investors thinking?

[BadThad]

I'm back in at $16.26....fingers crossed although I'm pretty confident in the stock.